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ROTH IRA Question - for those financey types..

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ROTH IRA Question - for those financey types..

Old 09-25-09, 06:25 PM
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ROTH IRA Question - for those financey types..

I have a question that I can't find a FIRM answer on. I have two ROTH IRA's and I want to take the money out of one (under $1,000) and put it in the other one. (New one has better rates) My question is, can I just take the money out and deposit it into the new ROTH? The new company will not do it for me since it is under $1,000 (for some odd reason).

Everything I see online says as long as the money is back in a ROTH within 60 days there are no penalties. Can anyone shed any light on this for me?

(And yes it has been a while since I visited ye ole dvdtalk.)
Old 09-25-09, 06:55 PM
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Re: ROTH IRA Question - for those financey types..

Short answer: yes.

Short answer with explanation: Principal in a ROTH IRA has already been taxed, earnings/growth have not. You're not taking it out for retirement, so if the money has not been there for at least 5 years it has to stay in a ROTH. If you take it out, you have 60 days to put it back or put it in a different ROTH.

Caveat: If your employer is the administrator for your ROTH IRA, then you have to play by their rules for distrubutions. If they won't give you anything or roll it elsewhere because it's too piddling small, you have to leave it there. The only other option you have is to quit or get fired. Once you no longer work for them, those restrictions go away.
Old 09-25-09, 07:02 PM
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Re: ROTH IRA Question - for those financey types..

Okay thanks, It is not from my job. One is with Sharebuilder (which I am closing) and I am transfering it to a TRowe Price ROTH.
Old 09-26-09, 07:02 AM
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Re: ROTH IRA Question - for those financey types..

Could you add more to it, getting it over $1000, then transferr?
Old 09-26-09, 07:56 AM
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Re: ROTH IRA Question - for those financey types..

You are correct that you have 60 days to roll it over if they make the check out to you. I can understand them not electronically transferring the money to another account for you, but they shouldn't have a problem making the check out to T-Rowe Price (on your behalf) and mailing it to you.

This would make it easier when you file your taxes because the 1099 would show that a distribution was made, but since the check was made out to another fund manager it would show as a non-taxable distribution.

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